County to consider earthquake coverage

Thursday

The Shawnee County Commission on Thursday authorized its insurance broker, Willis of Greater Kansas Inc., to get earthquake insurance quotes from carriers.

Bill Neiswanger, vice president of the Overland Park branch of the global brokerage firm, presented the idea Thursday. He said earthquake insurance is fairly inexpensive, but it will take time to put together proposals.

“I think we should look into it,” said Commissioner Mary Thomas.

Commissioner Shelly Buhler agreed, saying there is no harm in getting proposals.

The idea comes after a 5.6-magnitude earthquake and at least 10 aftershocks rattled Oklahoma Nov. 5 and 6. Some of the shock waves shook houses as far away as Topeka. Neiswanger referenced the vibrations while discussing earthquake coverage.

Neiswanger offered to look into earthquake insurance after presenting commissioners with new quotes for property, automobile and excess workers’ compensation insurance coverage. Willis went out for bids anticipating an increase in property/casualty coverage because of the larger number of disasters experienced this year, he said.

“2011 was not a good year for property casualty,” Neiswanger said.

The rates also went up by increasing the county’s property limits by $36 million.

Willis sent requests for quotes to 28 insurers, but only seven provided them. Given the rates, Neiswanger recommended the county stay with its current insurer, Travelers Insurance, with the exception of automobiles. By switching automobile coverage to Employers Mutual, he said, the county will save $22,000.

Annual premiums are expected to increase $63,783.04 — or by 12.8 percent — to $562,412.24 next year. But that will go up once the county takes over insurance coverage for Topeka parks and recreation facilities.

The county and city haven’t been able to agree on what the county will insure yet, so the city has agreed to retain its coverage for the time being. The county will reimburse Topeka’s expenses once all of the deeds and liability are transferred to the county, Neiswanger said.

Other than a few hiccups in insurance coverage, however, the consolidation of the city’s and county’s parks and recreation departments has been “nearly seamless,” said John Knight, parks and recreation director.

“The vast majority of the pieces have been put together,” he told commissioners Thursday.

Although some people thought the departments needed 18 to 24 months to consolidate, the employees worked together and tackled the project in six months, he said. Residents won’t see any disruption in service, Knight said.

The update was supposed to be the last Knight would give the commissioners, considering the consolidation becomes effective Jan. 1. However, Commissioner Ted Ensley asked that Knight update the commission weekly for the first few weeks of the new year.

Commissioners Buhler, Thomas and Ensley also voted 3-0 to approve:

— The consent agenda, which included a $3,400 raise for sheriff’s Captain Phil Higdon.

— $13,711.22 in improvements to the Kansas Expocentre.

— $243,720 in encumbrances.

— An amendment to the 2011 budget to set aside $100,000 into the special liability fund.

Aly Van Dyke can be reached at (785) 295-1270 or aly.vandyke@cjonline.com. Follow her on Twitter @alyvandyke.

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